AudioCodes (AUDC) & Digi International (DGII) Head-To-Head Analysis
AudioCodes (NASDAQ: AUDC) and Digi International (NASDAQ:DGII) are both small-cap technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.
Risk and Volatility
AudioCodes has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, Digi International has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for AudioCodes and Digi International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AudioCodes presently has a consensus target price of $7.75, indicating a potential upside of 5.01%. Digi International has a consensus target price of $14.50, indicating a potential upside of 41.46%. Given Digi International’s stronger consensus rating and higher possible upside, analysts plainly believe Digi International is more favorable than AudioCodes.
Earnings and Valuation
This table compares AudioCodes and Digi International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AudioCodes||$145.57 million||1.61||$16.23 million||$0.54||13.67|
|Digi International||$181.63 million||1.51||$9.36 million||$0.35||29.29|
AudioCodes has higher earnings, but lower revenue than Digi International. AudioCodes is trading at a lower price-to-earnings ratio than Digi International, indicating that it is currently the more affordable of the two stocks.
This table compares AudioCodes and Digi International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
22.1% of AudioCodes shares are owned by institutional investors. Comparatively, 77.4% of Digi International shares are owned by institutional investors. 48.8% of AudioCodes shares are owned by company insiders. Comparatively, 6.8% of Digi International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
AudioCodes Ltd. designs, develops and sells Voice over-Internet Protocol (VoIP) and converged VoIP, and data networking solutions, products and applications that facilitate Unified Communications (UC) and Contact Center (CC) services. The Company categorizes its products and services into two main business lines: network and technology. Network products consist of customer premises equipment (CPE), gateways for the enterprise and service provider (or carrier) markets and of carrier-grade-oriented low- and mid-density media gateways for service providers and Enterprise Session Border Controls (ESBCs). Complementing its media gateways and session border gateways as network products are its multi-service business routers (MSBR), Internet Protocol (IP) phones, media servers, mobile VoIP solutions and value added application products. Technology products consist of its chips and boards business products. Its products are deployed in enterprise, service provider cloud networks.
About Digi International
Digi International Inc. is a provider of mission and business-critical machine-to-machine (M2M) and Internet-of-Things (IoT) connectivity products and services. The Company creates connected products and deploys and manages critical communications infrastructures in a range of environments. It offers four categories of hardware products: cellular routers and gateways, radio frequency (RF), embedded and network products. The Company’s cellular product category includes its cellular routers and all gateways. The Company’s RF product category includes its XBee modules, as well as other RF Solutions. Its embedded product category includes Digi Connect and Rabbit embedded systems on module and single board computers. Its network product category includes console and serial servers and universal serial bus (USB) connected products. The Company’s service offerings include wireless design services, Digi Device Cloud (which includes Digi Remote Manager) and enterprise support services.
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